PRINCE2F PRINCE2 Practices Practice Question
In the Progress practice, what is 'management by exception'?
⚠ Common exam trap
A common mix-up: candidates confuse 'management by exception' with 'micro-management' or 'full reporting'—candidates often think the Board must approve all deviations, but PRINCE2 specifically limits Board involvement to tolerance breaches only.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Management is only involved when tolerances are forecast to be exceeded
Management by exception is a core PRINCE2 principle where the Project Board only gets involved when forecasts indicate that tolerances (e.g., time, cost, quality) will be exceeded. This allows the Project Manager to manage day-to-day within agreed tolerances, escalating only exceptions. Option B correctly captures this delegation of authority.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The Project Manager must report all decisions to the Project Board
Why it's wrong here
Only exceptions are escalated; routine decisions are within the PM's authority.
- ✓
Management is only involved when tolerances are forecast to be exceeded
Why this is correct
This is the definition of management by exception.
- ✗
The Project Board manages the project on a daily basis
Why it's wrong here
The Project Board manages by exception, not daily.
- ✗
All deviations from the plan must be approved by the Project Board
Why it's wrong here
Deviations within tolerances do not need Board approval.
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